Calif. Groups Seek Tax Extension Deal To Fund Health Care, Education
California groups seeking to extend Proposition 30's tax increases are working to develop a compromise plan that would raise money for a special fund to pay for health care programs and education, the Sacramento Bee's "Capitol Alert" reports (Cadelago, "Capitol Alert," Sacramento Bee, 11/4).
Proposition 30 increased the state's sales and income taxes. The increased sales and income taxes under Prop. 30 are set to expire in 2016 and 2018, respectively (California Healthline, 9/22).
Groups involved in the talks include the:
- California Hospital Association;
- California Medical Association;
- California Teachers Association; and
- Service Employees International Union.
Details of Compromise Plan
The groups currently are focusing on two main measures ("Capitol Alert," Sacramento Bee, 11/4). They include:
- A proposal by CHA and SEIU-United Healthcare Workers West that would expand and make permanent income tax increases on California's highest earners but also allow Prop. 30's sales tax increase to expire in 2016, as scheduled (California Healthline, 9/22); and
- A plan by SEIU and CTA that would extend the income tax increase until 2030.
According to "Capitol Alert," the groups have been meeting for several weeks to reach a compromise, but they have not yet developed a draft plan.
Gale Kaufman, a Democratic strategist working with CTA and SEIU, in an emailed statement said, "These groups are continuing to discuss the final aspects of this new initiative, outreach with other allied groups and do the research and due diligence necessary to ensure its passage."
According to "Capitol Alert," it is unclear how funding generated by a comprise plan would be used. However, CMA and CHA both have advocated for increasing reimbursements for Medi-Cal providers. Medi-Cal is California's Medicaid program ("Capitol Alert," Sacramento Bee, 11/4).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.